Fixed-line operator Telkom and three unions representing about 70% of its workforce are still in talks this week, in a bid to prevent a crippling strike.
Solidarity, the Communication Workers Union (CWU), the South African Communications Union and the telecoms company have been in negotiations for about five months over a two-year wage deal that was meant to come into effect in April.
Although Telkom has failed to meet unions' demands, labour is holding off on mass industrial action, and is instead continuing to negotiate while polling members on the telecoms company's latest offer.
On Friday, Telkom proposed a 6.5% increase during a special meeting with labour at the Commission for Conciliation, Mediation and Arbitration (CCMA). The meeting was held in a last-ditch attempt to stave off strike action.
Before last week's meeting, unions warned strike action would start this Thursday if Telkom did not offer 7.5% for the highest-paid workers and 8% for lower income staff.
Telkom previously proposed a 5% increase for the period between April and September this year, and an additional percentage point for the period October 2011 to March 2012, as well as inflation plus one percentage point for the next year. Those increases were rejected by unions.
Positive outlook?
Talks between labour and the telecoms company continue in a bid to find common ground and prevent a strike, says Solidarity spokesman Marius Croucamp. Details of the talks cannot be disclosed.
Croucamp is optimistic of finding a solution to the impasse by the end of this week. “It's looking like we are getting closer to finding a deal.”
Telkom had 22 884 permanent employees at the end of March, according to its latest annual report. More than 15 000 staff members belong to one of the three unions.
In the meantime, the union is polling its members to determine whether the 6.5% offer should be accepted. Croucamp says this is a complicated process as Telkom has 2 000 points of presence around SA.
CWU spokesman Toto Ntehu says unions were given a strike certificate by the CCMA last Friday, and the CWU is reporting back to its members on Telkom's latest offer.
Although the union has the right to hit the streets, talks continue, notes Ntehu. He says there is a 50:50 chance a strike will go ahead.
There are also other issues on the table, such as job security, says Ntehu. Telkom has previously said its final 5% increase was linked to job security.
Ntehu says the union does not want a “guilty conscience” and will do as much as possible before embarking on industrial action. He says its mandate is to improve workers' lives and a strike is a last resort. “We have done enough, but still we are negotiable.”
Telkom did not respond to a request for comment. Executive for employee relations, Meshack Dlamini, previously said Telkom “has contingency measures in place to minimise the potential effect of industrial action”.
However, an August 2009 strike, when 2 000 staff members embarked on industrial action, saw customer service faults increase 30%, and sabotage to the network cost Telkom millions of rands.
The company lost 18 “man days” when 2 241 staff participated in a strike in the run-up to the 2010 Soccer World Cup last year.
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